Who is liable for damage to a vehicle that is placed on consignment at a independent used car lot?

UPDATED: Jul 27, 2011

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Who is liable for damage to a vehicle that is placed on consignment at a independent used car lot?

Either damage meaning: vandalism, storm damage, or car accident by customer interested in vehicle.

Asked on July 27, 2011 Oklahoma


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If there is a written contract between the owner of the vehicle consigned and the company accepting it for consignment, read the terms and conditions of the agreement in that its terms set forth the obligations of the parties to each other as to percentage of sale and damages sustained to the vehicle while on the lot.

Its terms will define who would be responsible for any damages sustained to the vehicle.

If there is no language as to responsibility for damages, you would bear the burden of proving that the company having the car in its possession was negligent in order for it to pay any damages suffered by the vehicle.

In all likelihood, if there is a written agreement fo placement of the car at the lot, the lot's owner will disclaim any liability for damages to it while there. If that is in the agreement, you are on the hook fo the damages unless you can show that an employee of the used car lot purposefully caused the damages or a third party caused the damages to the car.

Good luck.

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